Love Funding, one of the nation’s leading providers of FHA multifamily, affordable and healthcare financing, announced the closing of a $12.9 million loan for the construction and permanent financing of Encore Townhomes, an 80-unit market-rate apartment community in the Detroit suburb of Utica, Michigan.
Love Funding Midwest Regional Director Bruce Gerhart secured the loans through the U.S. Department of Housing and Urban Development’s 221(d)(4) loan insurance program for the new construction or substantial rehabilitation of apartment properties. Using the program will allow the borrowers to obtain fixed, low-rate, non-recourse financing for a 40-year term, in addition to the initial 17-month construction period.
The project – which consists of 13 garden-style, two-story buildings – is being developed by Tiburon Investments Utica LLC and built by Fairview Construction Inc. based on architectural plans from Progressive Associates Inc. The development team has extensive experience in purchasing troubled assets and successfully repositioning them in the market, including a number condominium developments in the state of Michigan. Love Funding brought in Elaine Simpson of Occupancy Solutions LLC to advise on the project’s marketing.
Encore Townhomes is being built in a growing suburban area in Utica, and is situated next to a newly built luxury condominium development. Encore Townhomes residents will enjoy shared access and use of the condominium’s clubhouse, outdoor pool, fitness room, business center and other amenities at no additional cost to their rent.